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STARTING AND OPERATING A BUSINESS IN INDIANA Copyright © 2000, Michael D. Jenkins
CONTENTS OF THIS CHAPTER:
I. INTRODUCTION I. INTRODUCTION Indiana has a fairly typical tax and legal structure under which businesses must operate. Until 2003, it had an unusually complex three-tiered approach to taxation of corporations, with a gross income tax, an adjusted gross income tax, and a supplemental corporate income tax, but its tax system was completely overhauled as of January 1, 2003, with the repeal of the gross income tax and supplemental corporate income tax, along with concomitant increases in the sales tax rate and the adjusted gross income tax rate. Like most states, Indiana imposes income taxes, a franchise tax (on financial institutions only), a sales and use tax, various excise taxes, with property taxes mostly imposed at the local level. The state has also adopted a limited liability company (LLC) law and limited liability partnership (LLP) law, so that businesses operating in Indiana in LLC or LLP form may obtain the advantages of limited liability, without incorporating or becoming subject to corporate taxation, generally. At present, the state's economy is quite strong, in terms of the level of unemployment and other economic measures. For example, in February, 2000, the Indiana unemployment rate was an extremely low 3.2%, versus 3.1% a year earlier, and well below the national level of unemployment of 4.1%. To view the latest federal Bureau of Labor Statistics unemployment rate data for Indiana or any other state, visit the BLS website. II. LEGAL ENTITIES -- FILING FEES AND REPORTING REQUIREMENTS. (a) In General. A business that operates in Indiana can operate as a sole proprietorship, a general or limited partnership, a corporation, or a limited liability company. In addition, like the federal tax law, the state income tax law also recognizes S corporations, for income tax purposes, and generally allows the income or losses of an S corporation to "flow through" and be taxed or deducted at the shareholder level, rather than taxing the corporation itself as an entity. Indiana also provides for limited liability partnerships, in which no partner is liable for debts of the partnership, in general, as in the case of a corporation or LLC, but with fewer legal formalities than are required for either a corporation or an LLC. Each of the above entities is discussed below, along with the basic requirements for forming such an entity and any general ongoing (non-tax) reporting requirements that are applicable to it. The tax treatment of each form of legal entity is discussed in Section IV below. (b) Sole Proprietorships. In general, sole proprietorships in Indiana can be formed with no formalities. However, as discussed in Section IV(b), it will typically be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, as well. No separate tax form filing is required, generally, for a sole proprietorship, under the Indiana income tax law. Instead, as with the Schedule C on your federal Form 1040, you simply report the net income or loss from your sole proprietorship on your state personal income tax return. See Section IV(c) for information on the Indiana income tax and filing requirements for individuals. As a sole proprietor, you are not required to pay any unemployment taxes on your business income or obtain workers' compensation coverage for yourself. (c) Partnerships. As a rule, general partnerships in Indiana can be formed with no formalities, although it is highly advisable to have a written partnership agreement. However, as discussed in Section IV(b), it will generally be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, for any type of partnership, including general or limited partnerships, or limited liability partnerships. A limited partnership, in which there is at least one general partner (who is liable for partnership debts) and at least one limited partner (who is not liable for partnership debts), may also be formed under Indiana law. Unlike a general partnership, a limited partnership must have a written partnership agreement. It must also file a certificate of limited partnership with the secretary of state, together with a filing fee of $90. Foreign limited partnerships must register with the secretary of state before being allowed to do business in Indiana, and must also pay a registration fee of $90. For information on limited partnership filing requirements, see the contact information for the offices of the Indiana Secretary of State, listed in Section VI(a). Limited liability partnerships (LLPs) are a form of partnership permitted under the laws of Indiana. Like an LLC, an LLP provides limited liability for its owners, while retaining the tax advantages of a partnership for federal and Indiana state income tax purposes. However, unlike an LLC, an LLP typically operates like a regular partnership, and is not required to file articles of organization. To form an LLP in Indiana, you must file a registration form with the secretary of state and pay a filing fee of $90. A foreign LLP, one created under the laws of another state, must register also with the secretary of state and pay a fee of $90. Since 1997, LLPs are no longer required to file annual or biennial reports. Instead, they must file an amended registration and pay a $30 filing fee any time the information in their original registration changes. For more information on LLP registration and reporting requirements, see the contact information for the offices of the secretary of state, listed in Section VI(a). Note that one potential drawback of LLPs, if you will do business in other states besides Indiana, is that some states, like California and New York, only recognize certain types of professional partnerships as LLPs. If yours is not a professional partnership, such other states may simply treat your LLP like an ordinary general partnership, with no limitation of liability. A partnership agreement, for any type of partnership, should spell out in considerable detail such matters as the following:
Partnerships, as entities, are not subject to state income taxes or gross income tax in Indiana. Instead, the income or losses of the partnership, as allocated among the partners, must be reported on the personal income tax returns of the individual partners (or on the corporate tax returns of any corporate partners). Partnerships are required to file an annual tax information return with the state. For details on Indiana partnership tax return filing requirements, see Section IV(c). (d) Corporations. To form a corporation in Indiana, you must file articles of incorporation with the Indiana Secretary of State and pay a fee of $90. A foreign corporation (one that is formed under the laws of another state or a foreign country), must obtain a certificate of authority before it may legally conduct business in Indiana, by filing an application for a certificate of authority and paying a filing fee of $90. For more information on filing articles of incorporation or applying for a certificate of authority to do business in Indiana, see the contact information for the offices of the secretary of state, listed in Section VI(a). In addition, once your corporation is formed, or your foreign corporation has obtained a certificate of authority, it will be required to file biennial reports and pay a filing fee of $30 with each such report to the secretary of state. Failure to file this report on a timely basis could result in suspension or revocation of your corporation's charter. Professional corporations are no longer required to file annual reports with the Secretary of State, in 1997 and later years, but now file biennial reports like other corporations. In addition to paying federal income taxes on its income, a corporation that does business in Indiana must also file corporate income tax returns with the state. See Section IV(c) for a discussion of state corporate income tax rates and tax return filing requirements. For tax forms and more information on corporate income and gross income taxes in Indiana, see the contact information for the offices of the Indiana Department of Revenue, listed in Section VI(a). (e) S Corporations. An S corporation is simply a regular corporation that has elected, for federal or state income tax purposes, or for both, to be taxed somewhat like a partnership, with its income, losses and tax credits flowing through to its owners, who report such income, losses, or credits on their individual tax returns. Indiana recognizes S corporations for income tax purposes, and treats them in a manner similar to the federal tax treatment. That is, an S corporation is exempt from the Indiana adjusted gross income tax on corporate income, provided it withholds state income tax from distributions made to nonresident shareholders. (f) Limited Liability Companies. Indiana, like every state in the U.S., has adopted a limited liability company (LLC) law. Thus, in addition to the traditional choices of a sole proprietorship, partnership, or corporation, a business that operates in Indiana may also choose to operate in the form of an LLC. In most states, LLCs are very attractive entities for many small businesses, in that they offer the same protection as a corporation from creditors for debts of the business, while offering much of the flexibility plus the flow-through tax treatment of a partnership for federal tax purposes. See Section IV(c) for a discussion of the income tax treatment of LLCs under Indiana tax laws. To form an LLC under the laws of Indiana, one or more persons must file articles of organization with the Indiana Secretary of State, which must be accompanied by filing fees of $90. Foreign LLCs, those formed under the laws of another state, must register with the state before they may do business in Indiana, by filing an application form with the Indiana Secretary of State and paying a filing fee of $90. Indiana law now provides that domestic or foreign LLCs may have only one member, retroactive to July 1, 1993. In addition to initial filing fees, every LLC, domestic or foreign, must subsequently file biennial reports and pay a biennial report filing fee of $30 with each such report. For more information on filing articles of organization for an LLC, see the contact information for the offices of the secretary of state, listed in Section VI(a). III. BUSINESS ACQUISITIONS (a) In General. When acquiring an existing business, there are a number of state legal and tax issues you or, preferably, your business attorney, should attend to before closing the purchase. These include matters such as doing a title search for any real property that is being acquired, checking for any recorded security interests on personal property items, and thoroughly researching county, state, and federal records for any judgment liens, tax liens, or other liens, before property is acquired. You will also benefit from consulting a tax advisor before the agreement of sale is negotiated, in order to seek a structuring of the agreement so that the purchase price is allocated among the assets in a way that favors you. You may be able to obtain considerable tax savings if the purchase price is allocated in a way that gives you the best possible tax results under federal and state income tax laws, and other state tax laws, such as sales/use tax or property tax laws. Depending upon the state (or states) in which the seller's assets are located, you may also have to comply with state bulk sale or bulk transfer laws. You should also obtain tax releases from various state taxing agencies, as discussed below. (b) Bulk Sale Laws. Typical bulk sale laws require either publication of legal notices to all creditors in advance of the sale and recording of such notices in some cases, or maintenance of detailed lists of the property to be transferred, for inspection by the public. Indiana has a bulk sale law and you will need to comply with this law when you purchase assets of an existing business. Failure to do so will expose you to liability to any creditors of the seller who do not get paid off when the sale of the business occurs. Indiana's bulk sale law closely follows the bulk transfer provisions of the Uniform Commercial Code. The basic requirements, when purchasing the assets of business in a bulk sale, are as follows:
A buyer may be excused from most of the above notice requirements if the number of claimants against the seller is 200 or more (excluding certain claims, such as wage claims and those of secured creditors), and if the buyer instead files a written notice of the bulk sale in the office of the secretary of state. Compliance with the bulk sales law should be handled by a competent business attorney, as its requirements are quite specific and very technical in nature. (c) Tax Releases. When you acquire an existing business, you will want to make sure that you do not unwittingly become liable for any unpaid taxes owed by the seller. Typically, to protect yourself, you will need to receive a tax release or releases from various state taxing agencies, for such taxes as sales and use tax, income tax withholding, and state unemployment taxes, in each state in which the seller does business. If you fail to obtain such a release or written statement from the tax agency that the seller is not delinquent on any tax payments, you will be held responsible for such tax if it is not withheld from the purchase price proceeds and paid to the state at the time the sale of the business transpires. In Indiana, you should insist that the seller obtain an unemployment tax release from the Indiana Department of Workforce Development, to assure you that you need not withhold any such tax, or to advise you of the amount of such tax that you must withhold from the purchase price at closing. As a buyer of a business, you are not liable for Indiana sales tax that the seller owes but has not yet paid. (d) Unemployment Tax Rating of Seller. In addition to obtaining tax releases, you may find it advantageous to succeed to the seller's unemployment tax experience rating, if the seller has a tax rate lower than you would otherwise obtain as a new business. To obtain the seller's favorable experience rating as a successor employer, you will need to apply on a timely basis to the Indiana Department of Workforce Development, requesting that you be treated as a successor employer. IV. INDIANA TAXES AND OTHER GENERAL REQUIREMENTS. (b) State and Local Licensing. Nearly any business, operated anywhere in the United States, will have to have at least one government license of some kind. In most cases, this will be a local license, issued by your city or county. Before you open your business, contact your local city or county hall and find out if your particular business needs one or more local licenses. Most kinds of local business licenses are granted upon payment of a fee, with no further requirements, except possibly for annual or other periodic renewal fees. However, if you are engaging in any kind of food business, you will usually need to also obtain a health department permit and show that you are in compliance with health department food-handling requirements. In addition, be sure to check with an attorney or local government zoning or planning department officials to determine if your business will be in compliance with all local zoning and planning restrictions. If you own or rent any type of facility, you will generally need fire department permits, showing that you meet fire safety codes and any construction or improvements to an existing structure will usually require a building permit. If you intend to simply operate your business from your home, you may be in violation of local zoning requirements, but this is less likely to be a concern if you don't have clients, customers, suppliers, or employees coming to your house on business, on a regular basis. State governments have also traditionally required special licenses for many kinds of professionals, such as physicians, dentists, lawyers, and accountants. To further protect consumers, Indiana has expanded the list of occupations that must be licensed by the state to include many other occupations. Most state licenses not only require payment of fees, but are only issued for a given profession or occupation upon showing that you have completed certain educational or experience requirements, or passed certain tests, or some combination of the foregoing. For information on state licensing and business registration requirements in Indiana, see the contact information for the offices of the State Information Center listed in Section VI(a). (c) Income and Franchise Taxes. Indiana has both a personal income tax and a corporate income tax, but no general corporate franchise tax. The Indiana individual income tax is imposed at a flat tax rate of only 3.4%, on an individual's adjusted gross income (AGI). AGI is essentially the same as your federal adjusted gross income, which means that few deductions are allowed, other than for business expenses. Most Indiana counties also impose one or more of several types of local income taxes, at rates that are generally limited to 1.25% on county residents, less on nonresidents. Individual taxpayers generally pay state income tax on their business earnings from a sole proprietorship, or on their share of the earnings of a pass-through entity, such as a partnership, S corporation, or LLC. The Indiana personal income tax return must be filed on April 15th of each year, for calendar year taxpayers, with the Indiana Department of Revenue. Partnerships, or entities taxable as partnerships, such as LLCs, are not subject to state income taxation in Indiana, but must file an information return with the Department of Revenue each year, showing each partner's share of taxable income, losses, and credits, on Form IT-1065. Individual taxpayers doing business as sole proprietors, or who are partners in partnerships, or members of LLCs, are required to make payments of estimated Indiana individual income taxes, if their net tax liability (not covered by withholding) exceeds $400. Estimated tax payments are due in four installments, on the 15th day of the 4th, 6th, and 9th months of the taxable year, and the 15th day of the first month of the following year. The Indiana corporate income tax rate, on corporations other than S corporations, was formerly a somewhat complex 3-layered set of taxes, consisting of an adjusted gross income tax, a gross income tax, and a supplemental net income tax. However, effective as of January 1, 2003, the gross income tax and supplemental net income tax were repealed, and the adjusted gross income tax rate was increased to 8.5%. The corporation adjusted gross income (AGI) tax is a tax on federal taxable income in Indiana, with certain adjustments. For example, no deduction is allowed for charitable contributions or for state income or local property taxes. Quarterly estimated tax payments may be required, if the AGI tax exceeds $1,000 a year. Corporate estimated tax Form IT-6 must be filed with any required corporate AGI tax, by the 20th day of the 4th, 6th, 9th and 12th months of the tax year. The state corporation income tax return is Form IT-20, which must be filed with the Indiana Department of Revenue by the 15th day of the fourth month following the end of the taxable year, or by April 15th in the case of a corporation whose taxable year is the calendar year. S corporations are generally recognized, as under federal tax law, and are exempted from the corporate adjusted gross income tax, if tax is withheld from payments to all nonresident partners. S corporations file returns on Form IT-20S. In Indiana, a limited liability company (LLC) is taxed in the same manner as a partnership, thus avoiding the possible double taxation of income that can occur with a corporation. ???????????? However, all LLCs, except for one-owner LLCs that are disregarded for tax purposes, are subject to the Indiana gross income tax, which also applies to corporations, as discussed above. Indiana law allows articles of organization to be filed by one person and state law has been amended, retroactive to 1993, to permit formation of one-owner LLCs, which now qualify for treatment as sole proprietorships for federal tax purposes. (d) Sales and Use Tax. Indiana imposes a general sales tax on retail sales of tangible personal property at the statewide rate of 6%, with no local sales or use taxes imposed. However, a number of counties have lodging taxes and some localities have food and beverage taxes. There is also a 5% local tax on admissions to professional sports events, to finance stadiums and sports facilities in specified counties. The Indiana sales tax generally applies only to transfers of tangible personal property. With few exceptions, services are exempt from tax, except where there is also a transfer of tangible personal property. Retail merchants must register with the Sales Division of the Department of Revenue. A sales tax certificate must be obtained (and a $25 fee paid) for each place of business in the state of Indiana. Register on Form BT-1, which is also your registration for income tax withholding, if you have employees, and for miscellaneous other Indiana taxes. There are numerous exemptions from the sales tax, the most important of which is the resale exemption. If you are a wholesaler or retailer who purchases goods that you will resell, your purchase of such goods may qualify as an exempt sale for resale. Similarly, if you sell goods to wholesalers or retailers for resale by them, your sale may also qualify as an exempt sale for resale. In any such transaction, the exemption is ordinarily available only if the purchaser gives the seller a valid resale certificate, certifying that the items are being purchased for resale, and not for use or consumption by the buyer. A shadow tax, the use tax, is also imposed at the same rate as the sales tax. It is primarily intended to tax property that is acquired from sources outside of the state, in transactions not subject to sales tax, when such property is used or consumed within Indiana. Use tax may also apply to items purchased on an exempt basis, such as for resale, if such items end up being used or consumed, instead of being resold. For more information on Indiana sales and use tax registration and compliance, see contact information for the offices of the Sales Tax Section of the Department of Revenue, in Section VI(a). (e) Real and Personal Property Taxes. In Indiana, as in every other state, any business real estate you own will be subject to real property taxes. In general, realty is taxed on its assessed value, which is one-third of its true cash value (which is not the same as fair market value). Indiana generally imposes personal property taxes on tangible personal property. However, business inventory is, since January 1, 2003, exempt from personal property tax where the inventory is altered into a new form and will be shipped, or will be incorporated into personal property that will be shipped, to a destination outside of Indiana. Otherwise, inventories are subject to property tax at present, unless exempted by the county where it is located. Beginning with assessments made in 2006, business inventory will generally be exempted statewide. While Indiana generally taxes tangible personal property, it does not impose a property tax on intangible personal property, such as stocks, bonds, promissory notes, and other such paper assets. (f) Other Business Taxes. Indiana imposes a number of other taxes on businesses, including:
(g) Trade Names. A trade name, also known as a fictitious or assumed name, is any name used in the course of business that does not include the actual legal names of all the owners of the business. Thus, if your business goes by any name other than your own real name, it is operating under a trade name. The same is true of a corporation, if it operates under a name other than its legal name. A trade name might also be one that suggests the existence of additional owners, by using such words as "company," "associates," or "group." In most states where you do business, it will be necessary to register a trade, fictitious, or assumed name, so that people who do business with you can find out who the actual owners of your business are. You may also want to register any such trade name, as a means of protecting against other companies usurping that particular trade name. Any business operating under an assumed name must file with the office of recorder of each county in which it operates. Corporations, LLCs and limited partnerships must also file a copy of the assumed name certificate with the Indiana Secretary of State, and pay a $30 filing fee to the secretary of state. V. EMPLOYER REQUIREMENTS IF YOU HAVE EMPLOYEES (a) Employer Registration and Withholding. If you have any employees, you will already be withholding federal income tax and FICA taxes from their wages. Since Indiana imposes a state income tax on the income of individuals, you will also need to withhold Indiana income tax from the wages of your employees. Before you begin to pay wages, you must register as an employer with the Indiana Department of Revenue on Form BT-1, which can also serve as your sales and use tax registration for a seller's permit. For more information on Indiana income tax withholding and registration requirements for employers, see the contact information for the offices of the Department of Revenue, listed in Section VI(a). (b) Unemployment and Other State Payroll Taxes. If your business has one or more employees, you, as an employer will be required to pay state unemployment tax based on the amount of such wages paid. Employers subject to the Indiana unemployment tax are required to register with the Unemployment Insurance Services division of the Indiana Department of Workforce Development, to obtain an employer identification number for unemployment tax purposes. New employers are required to pay tax at a rate of 2.7% in 2000 on the first $7,000 of wages paid to each employee. After you have had employees for a while, you will develop an unemployment tax experience rating. This rating is based on the number of employees you terminate who then claim unemployment benefits and the amount of such benefits paid to those former employees, under complex formulas. The state will inform you when they have assigned you an individual tax rate based on your firm's experience rating. That rate may be higher or, if you have had relatively few benefit claims charged to your account, lower than the standard new employer tax rate you initially were paying. All state unemployment taxes are imposed upon you as the employer, and, under Indiana law, cannot be charged to your employees or withheld from their wages. For more information on your Indiana unemployment tax obligations as an employer, see the contact information for the offices of the Department of Workforce Development, listed in Section VI(a). (c) Workers' Compensation. Workers' compensation insurance is a state-mandated insurance requirement for most employers, in almost every state. In Indiana, virtually all businesses with one or more employees are required by law to have workers' compensation insurance, except those able to self-insure. Note, however, that a sole proprietor or a partner in a partnership is generally not considered an employee. Workers' compensation provides wage loss and medical benefits to employees injured on the job and it protects you, as an employer, from legal action for damages for injuries or job-related illnesses suffered by your employees. In effect, it is a "no-fault" insurance system for work-related injuries or illnesses. Thus, if you fail to obtain required workers' compensation insurance, and an employee is injured on the job, you will have opened yourself to unlimited liability and severe legal consequences, so it is very important to obtain workers' compensation insurance for your employees. Be aware that neither general liability nor health and accident insurance can properly substitute for workers' compensation insurance. As an employer, you must notify injured employees of their benefits and post a notice in the workplace informing your employees of their workers' compensation coverage. For more detailed information regarding your obligations as an employer under the Indiana workers' compensation laws, contact your insurance carrier or see the contact information for the offices of the Workers' Compensation board, listed in Section VI(a). (d) State Wage and Hour Laws. Some employees of certain small firms not engaged in interstate commerce are not covered by the federal minimum wage and overtime laws. However, even if few or none of your employees are covered by the federal wage-hour laws, because your firm does less than $500,000 a year in gross sales and the employees in question are not deemed to "...engage in (interstate) commerce...," they will still generally be subject to the Indiana wage-hour laws, which provide for a state minimum hourly wage that is currently $5.15. Indiana law also requires overtime pay at one and one-half times the regular rate of pay, for hours worked in excess of 40 hours a week. In addition to wage-hour laws, most businesses are subject to federal child labor laws, which put numerous restrictions on the working hours and kinds of work in which minors under the age of 18 may engage. Your business must also be cognizant of similar state child labor laws, in Indiana, which are generally more restrictive with regard to hours that may be worked for children 16 or 17 years old, and somewhat less restrictive than federal laws for children 14 or 15 years of age. (e) State Occupational Safety and Health Laws. Approximately half of the states have their own OSHA-like agency, charged with administering the state's own occupational safety and health laws. The remaining states have no such enforcement agency, and thus rely instead on the federal Occupational Safety and Health Administration (OSHA) to administer the federal job safety rules within such states. Indiana is one of the states that has its own OSHA-type agency. To determine if your workplace is in compliance with federal and Indiana job safety requirements, you may wish to contact the Indiana Department of Labor (IOSHA), and request a free on-site safety consultation. You will not be cited for any violations detected, provided that you promptly correct the unsafe conditions. This differs from the rules for consultations by federal OSHA inspectors, who are required to cite you for any violations they find. For information on your job safety and health obligations as an employer, required posters, and possible on-site safety consultations, see the contact information for the Department of Labor - IOSHA, listed in Section VI(a). (f) Other Miscellaneous State Labor Laws. Other Indiana labor laws you need to be aware of, as an employer, include the following: (1) Wage payments to employees. Indiana law requires employers to pay wages on at least a semimonthly or biweekly basis, if requested. Payments must be made to an employee who terminates employment voluntarily no later than the next regular payday, or within 10 days if terminated or laid off involuntarily. A penalty of 10% per day, up to double the wages owed, must be paid to the terminated employee if payment is not made on time. (2) Right-to-work laws. About half the states have enacted "right-to-work" laws, which guarantee that no person may be denied employment for refusing to join a union or for not paying union dues, thus banning either "union shop" or "agency shop" agreements, or both. In a union shop, an employee not belonging to a union may be hired but then must join the union, usually within 30 days. In an agency shop, an employee need not join the union but, to remain employed, must pay union dues. Indiana does not have such a right-to-work law and allows union shop or agency shop contracts between an employer and a union. (3) State anti-discrimination laws. In addition to complying with federal anti-discrimination laws, employers must also be aware of and comply with state civil rights laws in Indiana, and display a poster informing employees of their rights. For more information on the Indiana Civil Rights Act and your obligations as an employer, contact the Indiana Department of Labor, at the address listed in Section VI(a). (4) Reporting new hires. Under federal welfare reform laws, employers in all states are now required to report newly-hired (or rehired) employees to a designated state agency (the Indiana Department of Workforce Development for Indiana employers) within 20 days after the date of hire. VI. STATE SOURCES OF HELP AND INFORMATION (a) Key State Agencies Contact Information. Indiana, as many states have done in recent years, has set up a "one-stop" center to help your new or existing businesses to obtain all necessary state licenses and permits. To obtain help with all regulatory and permitting requirements, see the address for the State Information Center, which is listed below under the STATE LICENSES heading. Addresses and other contact information for other key Indiana state government agencies mentioned in this book are listed below for your convenience. SECRETARY OF STATE. Contact this office for information on:
STATE LICENSES. The following office has been established by the state of Indiana to help businesses starting up or relocating in the state with business regulations and permits.
EMPLOYER WITHHOLDING. Contact the Withholding Tax Section of the Indiana Department of Revenue, at the address listed above for that agency, to register as an employer, for purposes of Indiana income tax withholding. STATE UNEMPLOYMENT TAX. Contact the following state agency to determine whether you are an employer subject to payment of state unemployment taxes, and for registration as an employer if you are subject.
STATE OSHA PROGRAM. For required posters and information on federal and state occupational safety and health laws that affect you as an employer in Indiana, contact the IOSHA division of the Indiana Department of Labor, at the address listed above for that agency. (b) Small Business Development Centers. A number of Small Business Development Centers (SBDCs) are located throughout Indiana to assist you. These centers, usually located on college campuses, provide a wealth of start-up information and sponsor frequent business-oriented seminars. The Indiana Chamber of Commerce administers the SBDC program in Indiana under contract with the Indiana Economic Development Council. Contact the lead office below for information, or for the location of other SBDCs nearer to you.
(c) Internet Sites. If you have access to the Internet, there is a wealth of state and even local business information provided by state and local governments. All states now have a state government Web page, and most major state agencies also have sites on the Internet where you can obtain useful small business information on matters such as state taxes, financing sources, or the addresses and phone numbers (or e-mail addresses) of various state and federal agencies' offices in Indiana. Since new sites are appearing constantly, you might also want to search for other Indiana government Web sites by using one of the popular Internet search engines, such as Excite! or Yahoo. To start your Internet search for Indiana government information, you may want to begin with the following Internet sites: Access Indiana (state home page for Indiana): State Information Center (info on doing business or steps for starting a business in Indiana): List of Internet connections to Indiana state government offices: Indiana Department of Revenue home page: Indiana Small Business Development Corporation site listing sources of financial assistance for businesses in Indiana:(d) Financing Sources. For information and help on locating financing for your small business, contact the nearest U.S. Small Business Administration office in Indiana, or contact the Business Development Division of the Indiana Department of Commerce, at the address listed in Section VI(a) for that agency (which generally works with larger firms, such as manufacturers, which are expanding or relocating in Indiana). Also, for information on larger project financing, contact the following state agency:
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Copyright © 2000 Michael D. Jenkins
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